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The ONS reported the downturn in inflation was driven mainly by airfares and fuel. According to data published by the Department for Energy and Net Zero, the average cost of petrol in the UK
has fallen to the lowest rate since 2021 across recent weeks. The sudden fall in inflation suggests a cut in interest rates is likely to come from the Bank of England in November as the UK
economy marks a significant step in its recovery from the 2023 recession period. September’s inflation figure is also typically used to establish the annual increase to state benefits, which
is announced at the end of the financial year in April. The UK cost of living has spiralled in the last few years, with inflation peaking at an alarming 11 percent in 2022 following the
disastrous mini-budget championed by the Tory government under Liz Truss. In a bid to slow the spiralling price of goods and services, the Bank of England increased interest rates to
discourage spending and slash inflation. The current interest rate, set by the BofE, is five percent, with the next financial review due on November 7. Earlier this month, Bank of England
Governor Andrew Bailey suggested the central bank could begin to look at "aggressive" interest rate cuts, providing the inflation rate continued to reach positive milestones.
Looking ahead, the inflation rate remains vulnerable to increases triggered by high domestic energy bills, although it is expected the Bank of England will announce a significant cut to the
current interest rate.